If you own a rental property in Jacksonville, now may be the perfect time to sell. With low inventory and high demand from investors, the market is favorable for sellers. Take a look at the real estate market statistics and you'll see why Jacksonville is currently a hotspot for investment.
Employment, population, median household income, and median property values are all rising in Jacksonville (Data USA). Home prices in Jacksonville have increased by approximately 95% over the past five years, making it a great opportunity for owners to sell and cash in on their property (Zillow). Rents in the Jacksonville metropolitan area have increased year over year, which is a key statistic that every real estate investor wants to see (Zumper).
Because Jacksonville ticks many of the boxes investors are looking for, you're likely to get multiple offers when you put your property on the market. If you want to sell quickly and for the right price, it's important to understand all of your options for selling your rental property in the greater Jacksonville area before you put it on the market.
Options for Selling Your Rental Property in Jacksonville
Selling a rental property with current tenants has its pros and cons. Some landlords may choose to have their tenants move out before the lease ends, while others may market the property as an investment property with tenants living in it.
However, it's important to think carefully and do your research before taking action. There are two key things to consider:
Current rental agreement: Read the agreement carefully to understand your rights and the rights of your tenant. In some cases, you may be able to terminate the agreement early with proper notice. You may also need to seek eviction if your tenant violates the terms of the rental agreement (such as not paying rent) and doesn't agree to leave voluntarily. Florida rental laws: It's important to do everything by the book.
The next step is to determine the best option for selling your Jacksonville rental property.
1. Sell to a tenant
If you are thinking about selling your Jacksonville rental property, consider selling to your tenant. Once your tenant has rented for a while, they may be interested in purchasing. This will save you time and hassle by not having to list your property on the Multiple Listing Service (MLS). Make sure your tenant is pre-approved for a mortgage and use the right real estate contracts to protect both you and the tenant/buyer when selling your home in Florida.
2. Pay the tenant for an early move-out fee
You can also offer a cash-for-key incentive to get your tenant to move out before the lease expires. A cash-for-key incentive is when a landlord offers their tenant an amount of money (sometimes the equivalent of one or two months' rent) to get them to move out before the lease expires, giving them time to make any needed repairs and put the property up for sale.
3. Wait until the lease expires
If your tenant doesn't want to buy or move out early, you'll have to wait until the lease expires, but you can always put the property up for sale a few months before the lease expires. However, it's important to give your tenant proper notice and cooperation before any viewings. Additionally, remind your tenant that they must leave the property in good condition when they move out if they want their deposit back.
4. Sell with tenants present
Using an online listing platform like Roofstock is another good option to consider when selling a rental property in Jacksonville. Roofstock allows you to sell your home with tenants still in it, saving you time and money.
You'll continue to receive rental income until the day the transaction closes Access to a global network of qualified real estate investors with Roofstock gives you access to a larger pool of potential buyers than if you listed on the MLS When you sell with Roofstock, you get more for your money with competitive real estate commissions (3% instead of the typical 5% or 6%) Find out what other rental properties in Jacksonville are selling for on the Roofstock marketplace, allowing you to price competitively.
What to do before selling your rental property
If you want to sell your Jacksonville rental property fast and for top price, there are a few things you can do.
Put together a buyer's package that includes documents such as copies of lease agreements, tenant rent ledgers, financial statements, vendor list, maintenance history, and a summary of all capital repairs and improvements made over the past few years. This will give potential buyers a clear understanding of the benefits of purchasing your property. Before putting your rental property on the market, have a professional property inspection performed and make any necessary repairs. This will let buyers know you are serious about the sale and they don't need to worry about hidden issues. Inform your tenants that the property is for sale, how you will handle viewings, and the process for transferring existing leases and security deposits to the new owner. This will give your tenants peace of mind and prevent any misunderstandings in the future. Calculate potential capital gains tax liability and consider the possibility of deferring tax payments by using a 1031 tax-deferred exchange to purchase an alternative investment property in the US. This will help you maximize your profits from the sale.
How to Price Your Investment Property for Sale in Jacksonville
It goes without saying that you need to ensure that your property is priced competitively, however this can be difficult as you need to take into account the square footage of the property as well as your financial performance.
To help potential buyers understand the value of your property, calculate a cap rate by dividing your Net Operating Income (NOI) by your asking price, and check Roofstock Marketplace to ensure your price is competitive. Use a Cash-on-Cash (CoC) return to show buyers how much annual pre-tax cash flow their down payment will generate at current interest rates. If repairs are needed, determine the After Repair Value (ARV) to help buyers understand the immediate value of the property once all deferred maintenance is completed.
Choosing the right options when selling your rental property in Jacksonville can help you sell quickly and at a good price. Get a free estimate and consultation today.